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HomeMy WebLinkAboutItem 06.jd Cevi Date: 18 March 2014 Item No. APPROVAL OF A CONTRACT FOR SERVICES WITH CUMMINS NPOWER LLC TO PERFORM PREVENTIVE MAINTENANCE OF CITY GENERATORS Proposed Action Staff recommends adoption of the following motion: Move to approve a contract with Cummins NPower LLC to perform preventive maintenance services on designated City generators. Passage of this motion ensures continued inspection and servicing of the City's generators so they are able to respond to power outages and other demands for service. Overview This contract encompasses the preventive maintenance inspections and servicing for emergency and back-up generators at 14 City facilities. Included under the contract are the four fire stations, the Water Treatment Facility, two lift stations, two portable units, City Hall, the Central Maintenance Facility, the Police Department, and two wells. Preventive maintenance activities involve the biannual inspection and annual full service of each of the generators. The biannual inspections include the engine and transfer switch as well as the oil, electrical, fuel, exhaust, and cooling systems. For the annual service, filters and fluids are changed. The goal with this contract is to proactively eliminate problems through a formal schedule of preventive maintenance services. Three vendors returned proposals with Cummins NPower LLC providing all required services at the least cost. The contract term expires on March 31, 2016. Staff have reviewed the contract and associated documents and recommends its approval. Primary Issues to Consider • Is generator preventive maintenance necessary? Yes. The purpose of preventive maintenance is to prolong the service life of the generators and ensure that they able to operate in response to emergencies and other demands for service. Supporting Information • A copy of the contra for services and tabulation of proposals are attached Christop * J. Petree Public Works Director Financial Impact: $22,560.00 Budgeted: Yes Source: Department Operating Budgets Related Documents (CIP, ERP, etc.): Notes: Sufficient funds are programmed in each department's budget to meet the annual cost. CONTRACT FOR SERVICES THIS AGREEMENT made this 7h day of April 2014, by and between the CITY OF LAKEVILLE, hereinafter referred to as the "City", and CUMMINS NPOWER LLC, hereinafter referred to as the "Vendor". THE CITY AND THE VENDOR, FOR THE CONSIDERATION HEREINAFTER STATED, AGREE AS FOLLOWS: 1. CONTRACT AND CONTRACT DOCUMENTS. The Vendor hereby covenants and agrees to perform and execute all the provisions of the Generator Preventive Maintenance specifications prepared by the City for the facilities indicated, and as provided by the City for generator preventive maintenance services. The Vendor further agrees to everything required by this agreement and the contract documents. a. The City agrees to pay and the Vendor agrees to receive and accept payment in the sum of Twenty Two Thousand Five Hundred Sixty dollars and no cents ($22,560.00), inclusive of sales tax, in accordance with the prices set forth on the proposal forms attached hereto. b. Payments to the Vendor will be made semiannually based on work completed and submission and approval of an invoice. C. Contract documents consist of the following component parts: • This document entitled "Contract for Services". • Generator Preventive Maintenance Specifications, Schedule A. • Equipment Listing, Schedule B. • Facility Listing, Schedule C. • Proposal Forms for 2014 and 2015. In the event of conflict between the provisions of these documents, the order in which they are itemized above shall control resolving any such conflict. d. The Vendor agrees for fully and satisfactory complete the work contemplated by this contract. 2. INDEMNIFICATION. a. The vendor shall indemnify, defend and hold harmless the City and its officials, agents, representatives, and employees from any loss, claim, liability and expense (including reasonable attorney's fees and expenses of litigation) with respect to: (a) Worker's Compensation benefits payable on account of injury or death to any Vendor employee or to any employee of Vendor's subcontractors, where the injury or death arises out of or is in any way related to the work performed or to be performed under the Contract; (b) claims for personal injury, death, or property damage or loss asserted by a Vendor or subcontractor or any of 2 175004vl their officers, agents, representatives, or employees where the injury, death, damage, or loss arises out of or is in any way related to the work performed or to be performed under the Contract; and (c) claims for personal injury, death, or property damage or loss as asserted by third -parties at the work site, where the claim is based in the whole or in any part on, or is in any way related to, any act or omission by Vendor, or Vendor's subcontractors, agents, employees or delegates. b. Vendor shall agree that the indemnities stated above shall be construed and applied in favor of indemnification. To the extent permitted by law, the stated indemnities shall apply regardless of any strict liability or negligence attributable to the City and regardless of the extent to which the underlying harm is attributable to the negligence or otherwise wrongful act or omission (including breach of contract) of Vendor, its subcontractors, agents, employees or delegates. Vendor also agrees that if applicable law limits or precludes any aspect of the stated indemnities, then the indemnities will be considered limited only to the extent necessary to comply with that applicable law. The stated indemnities continue until all applicable statutes of limitations have run. C. If a claim arises within the scope of the stated indemnity, the City may require Vendor to furnish a written acceptance of tender of defense and indemnity from Vendor's insurance company. Vendor will take the action required by City within fifteen (15) days of receiving notice from City. 3. RIGHTS AND REMEDIES. a. The duties and obligations imposed by the Contract Documents and the rights and remedies available thereunder shall be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or available by law. b. No action or failure to act by the City or the Vendor shall constitute a waiver of any right or duty afforded by any of them under the Contract, nor shall any such action or failure to act constitute an approval of or acquiescence in any breach thereunder, except as may be specifically agreed in writing. 4. GOVERNING LAW. The contract shall be governed by the laws of the State of Minnesota. 5. INSURANCE. Prior to commencing work on the Contract, the Vendor shall furnish the City a certificate of insurance. The Vendor shall furnish and maintain during the project such public liability and property damage insurance as shall protect Vendor and any subcontractors performing work covered by the Contract from claims for damages by Workers Compensation Statute, and from claims for property damages or personal injury which may arise from operations under this Contract, whether such operations are by Vendor or by an subcontractor or anyone directly or indirectly employed by either of them and the amounts of insurance shall be as follows: a. Workers Compensation — as provided in the applicable law. 3 1750040 b. Comprehensive Public: Liability — Personal Injury - $2,000,000.00 Property Damage - $2,000,000.00 C. Comprehensive Automobile: Liability — Personal Injury - $2,000,000.00 Property Damage - $2,000,000.00 All insurance policies (or riders) required by this Contract shall be (i) taken out by Vendor and maintained with responsible insurance companies organized under the laws of one of the states of the United States and qualified to do business in the State of Minnesota, (ii) shall contain a provision that the insurer shall not cancel or revise coverage thereunder without giving written notice to Vendor as an insured party and to City as an additional insured at least thirty (30) days before cancellation or revision becomes effective, (iii) shall name Vendor as an insured party and City as an additional insured on a primary and non-contributory basis; (iv) shall be evidenced by a Certificate of Insurance listing City as an additional insured which shall be filed with the City. 6. TERM. The term of this Contract shall begin on or about April 7, 2014 and end on December 31, 2015, both dates inclusive, unless sooner terminated as hereinafter provided. 7. SUPPLIES, EQUIPMENT, AND INCIDENTALS. The City and Vendor agree that the Vendor shall furnish any and all supplies, equipment, and incidentals necessary for Vendor's performance of this Contract. 8. SUPERVISION OF VENDOR. The City's designated supervisor will be the Facilities Maintenance Coordinator, who, acting on the City's behalf, shall be responsible for providing communication and direction as to the provision of services by the Vendor under this Contract. The vendor will contact the City of Lakeville as to the supply dates and the time they will perform work at each facility. The Facility Maintenance Coordinator's mailing address is: 20195 Holyoke Avenue, Lakeville, MN 55044. Contact phone numbers are: (W) 952-985-2630; (C) 952-292-3374. 9. TERMINATION WITHOUT CAUSE BY CITY. The City reserves the right to terminate Vendor at will immediately without cause at any time within the term of this Contract. In the event of such termination, the City shall provide Vendor written notice of termination and upon receipt of same, Vendor shall immediately cease and desist Vendor's provision of services under this Contract and City shall have no further obligation under this Contract to pay any further compensation to Vendor except for compensation due and owing for services prior to Vendor's receipts of the written notice of termination. 10. INDEPENDENT CONTRACTOR. City and Vendor agree that Vendor, while engaged in carrying out and complying with the terms and conditions of this Contract and the provision of services thereunder, shall be considered at all times an independent contractor and not an officer, employee, or agent of the City. City and Vendor further agree that Vendor shall not at any time or in any manner represent that Vendor or any of the Vendor's Agents or employees are in any manner agents or employees of the City. City and Vendor further agree that Vendor shall be exclusively responsible under this Contract for Vendor's own FICA payment, workers compensation payments, unemployment compensation payments, withholding amounts, 4 175004v1 and/or self-employment taxes or other taxes if any such payments, amounts, or taxes are required to be paid by law or regulations. 11. WRITTEN NOTICE OR OTHER CORRESPONDENCE. Any written notice or other correspondence to be provided by or between the City and the Vendor in accordance with this Contract shall be hand delivered or mailed by registered or certified mail to the following address: CITY: City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 VENDOR: Cummins NPower LLC 1600 Buerkle Road White Bear Lake MN 55110 12. WAIVER OF DEFAULT. Any waiver by City of a default under the provisions of this Contract by Vendor shall not operate or be construed as a waiver of a subsequent default by the Vendor. No waiver shall be valid unless in writing and signed by the Mayor and the City Administrator on behalf of the City. 13. NO ASSIGNMENT OR SUBCONTRACTING. The City and Vendor agree that the services to be rendered by the Vendor under this Contract are unique and personal. Accordingly, the Vendor may not assign or subcontract out any of the Vendor's rights or any of the Vendor's duties or obligations under this Contract. 14. INVALIDITY OF PROVISIONS. If any term or provision of this Contract or any application hereof to any person or circumstances, shall to any extent be invalid or unenforceable, the remainder of this Contract or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be effected hereby and each term and provision of this Contract shall be valid and be enforced to the fullest extent permitted by law. 15. ENTIRE AGREEMENT. This instrument herein contains the entire and only agreement between the parties and no oral statement or representation or prior written matter not contained in this instrument shall have any force and effect. This Contract shall not be modified in any way except by writing executed by both parties. states: 16. DISCRIMINATION. Provider agrees to comply with Minnesota Statute that Subsection A. That, in the hiring of common or skilled labor for the performance of any work under any contract, or any subcontract, no contractor, material supplier or vendor, shall, by reason of race, creed, or color, discriminate against the person or persons who are citizens of the United States or resident aliens who are qualified and available to perform the work to which the employment relates; Subsection B. That no contractor, material supplier, or vendor, shall, in any manner, discriminate against, or intimidate, or prevent the employment of any person or persons 5 175004v1 identified in clause (1) of this section, or on being hired, prevent, or conspire to prevent the person or persons from the performance of work under any contract on account of race, creed, or color; Subsection C. That a violation of this section is a misdemeanor; and Subsection D. That this contract may be canceled or terminated by the state, county, city, town, school board, or any other person authorized to grant the contracts for employment, and all money due, or to become due under the contract, may be forfeited for a second or any subsequent violation of the terms or conditions of this contract. 17. WORK HOURS. Generator preventive maintenance shall start at 8:00 a.m. and be completed before 4:00 p.m. 18. BACKGROUND CHECKS. The City must receive from the Vendor and each Vendor's employee written authorization permitting the City of Lakeville Police Department to perform a criminal history background check and further authorize the Police Department to release the information obtained to the Lakeville City Council, City Administrator and other appropriate employees. The City reserves the right to deny access to City facilities those Vendors or Vendor's employees that it deems inappropriate. 19. MISCELLANEOUS. a. Data Practices/Records. (1) All data created, collected, received, maintained or disseminated for any purpose in the course of this Contract is governed by the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, any other applicable state statute, or any state rules adopted to implement the act, as well as federal regulations on data privacy. (2) All books, records, documents and accounting procedures and practices to the Vendor relative to this Contract are subject to examination by the City. b. Patented devices, materials and processes. If the Contract requires, or the Vendor desires, the use of any design, devise, material or process covered by letters, patent or copyright, trademark or trade name, the Vendor shall provide for such use by suitable legal agreement with the patentee or owner and a copy of said agreement shall be filed with the Owner. If no such agreement is made or filed as noted, the Vendor shall indemnify and hold harmless the Owner from any and all claims for infringement by reason of the use of any such patented designed, device, material or process, or any trademark or trade name or copyright in connection with the Project agreed to be performed under the Contract, and shall indemnify and defend the Owner for any costs, liability, expenses and attorney's fees that result from any such infringement. C. Prompt Payment to Subcontractors. Pursuant to Minn. Stat. §471.25, Subd. 4a, the Vendor must pay any subcontractor within ten (10) days of the Vendor's receipt of payment from the City for undisputed services provided by the subcontractor. The Vendor must pay interest of one and one-half percent (U/2%) per month or any part of a month to the Subcontractor on any undisputed 175004v1 amount not paid on time to the subcontractor. The minimum monthly interest penalty payment for an unpaid balance of One Hundred Dollars ($100.00) or more is Ten Dollars ($10.00). For an unpaid balance of less than One Hundred Dollars ($100.00), the Vendor shall pay the actual penalty due to the subcontractor. CITY OF LAKEVILLE It -114 AND: Matt Little, Mayor Charlene Friedges, City Clerk VENDOR Cummins NPower LLC ITS: STATE OF MINNESOTA ) ( ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of , 2014, by Matt Little and by Charlene Friedges, respectively the Mayor and the City Clerk of the City of Lakeville, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. STATE OF MINNESOTA ) ( ss. COUNTY OF ) 2014, NOTARY PUBLIC The foregoing instrument was acknowledged before me this day of , by the of a _ _ corporation, on behalf of the corporation. NOTARY PUBLIC 7 175004v1 RFP TABULATION CITY OF LAKEVILLE GENERATOR PM ON 14 GENERATORS PROPOSAL OPENING: CONTRACTOR PROPOSAL 4/1/2014 TO 12/31/2014 PROPOSAL 1/1/2015 TO 12/31/2015 CUMMINSNPOWER LLC $11,280.00 $11,280.00 WHITE BEAR, MN ZIEGLER POWER SYSTEMS $13,175.00 $13,175.00 SHAKOPEE, MN INTERSTATE POWER SYSTEMS $12,152.00 $12,550.00 MINNEAPOLIS, MN